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Management Systems and Procedures
Grantee institutions are expected to have systems, policies, and
procedures in place by which they manage funds and activities.
Grantees may use their existing systems as long as they are consistently
applied regardless of the source of funds and meet the standards
and requirements set forth in 45 CFR Part 74 or 92 and in this
policy statement. NIH may review the adequacy of those systems
in order to protect the Government's interests and may take appropriate
action, including the use of special terms and conditions, as
necessary. NIH will also oversee the performance of the grantee's
systems as part of its routine postaward monitoring. The grantee's
systems are also subject to audit (see "Administrative
Requirements Monitoring
Audit").
NIH seeks to foster within grantee organizations an organizational
culture that is committed to compliance, leading to both exemplary
research and exemplary supporting systems and resources to underpin
that research. Actions to achieve this result should include a
clear delineation of the roles and responsibilities of the organization's
staff, both programmatic and administrative, written policies
and procedures, training, management controls and other internal
controls, performance assessment, administrative simplifications,
and information sharing.
FINANCIAL MANAGEMENT SYSTEM STANDARDS
Grantees are required to meet the standards and requirements for
financial management systems set forth or referenced in 45 CFR
74.21 or 92.20, as applicable. The standards and requirements
for a financial management system are essential to the grant relationship.
NIH cannot support the research unless it has assurance that its
funds will be used in an appropriate manner, adequate documentation
of transactions will be maintained, and assets will be safeguarded.
Grantees must have in place accounting and internal control systems
that provide for appropriate monitoring of grant accounts to assure
that obligations and expenditures are reasonable, allocable, and
allowable, and that are able to identify large unobligated balances,
accelerated expenditures, inappropriate cost transfers, and other
inappropriate expenditure and obligation of funds. Grantees must
notify NIH when problems are identified.
A grantee's failure to establish adequate control systems constitutes
a material violation of the terms of the award, and NIH may include
special conditions on awards or take any of the range of actions
specified in "Administrative Requirements
Enforcement Actions,"
as necessary and appropriate.
PROGRAM INCOME
Program income is gross income earned by a grantee, a consortium
participant, or a contractor under a grant that was directly generated
by the grant-supported activity or earned as a result of the award.
Program income includes, but is not limited to, income from fees
for services performed, the use or rental of real or personal
property acquired under the grant, the sale of commodities or
items fabricated under an award, and license fees and royalties
on patents and copyrights. The requirements for accountability
for these various types of income under NIH grants are specified
below. Accountability refers to whether NIH will specify how the
income is to be used and whether the income needs to be reported
to NIH and for what length of time. Unless otherwise specified
in the terms and conditions of the award, NIH grantees are not
accountable for program income accrued after the period of grant
support.
Consortium agreements and contracts under grants are subject to
the terms of the agreement or contract with regard to the income
generated by the activities, but the terms specified by the grantee
must be consistent with the requirements of the grant award. Program
income must be reported by the grantee as discussed below.
Program income, other than income earned as a result of copyrights,
patents, or inventions or as a result of the sale of real property,
equipment, or supplies, earned during the period of grant support,
shall be retained by the grantee and may be used in one or a combination
of the following alternatives as specified by NIH. This includes
income earned from charges to third parties for use of equipment
or supplies acquired with NIH grant funds as well as charges for
unique research resources.
- Additive Alternative: Added to funds committed to the
project or program, and used to further eligible project or program
objectives.
- Deductive Alternative: Deducted from total project
or program allowable costs in determining the net allowable costs
on which the Federal share of costs will be based.
- Matching Alternative: Used to satisfy all or part of
the non-Federal share of a project or program.
- Combination Alternative: Under the combination alternative,
grantees use all program income up to (and including) $25,000
as specified for the additive alternative and any amount of program
income exceeding $25,000 under the deductive alternative.
The additive alternative will apply to program income earned under
NIH awards subject to expanded authorities and to Phase I awards
under the SBIR/STTR programs unless the terms and conditions of
the award specify the use of another alternative(s). For all other
awards, except awards to non-SBIR/STTR for-profit organizations,
the combination alternative will apply unless the terms and conditions
of the award indicate otherwise. The circumstances under which
NIH may require use of a different alternative include when a
grantee has deficient systems or where the PI has a history of
frequent, large annual unobligated balances on previous grants
or has requested multiple extensions of the budget/project period.
The deductive alternative will always apply to awards to non-SBIR/STTR
for-profit organizations.
Sale of Real Property, Equipment,
and Supplies
The requirements that apply to the sale of real property are addressed
in "Construction Grants" in
Part III.
For equipment and supplies purchased under NIH grants for basic
or applied research by non-profit institutions of higher education
or non-profit organizations whose principal purpose is the conduct
of scientific research, the grantee is exempt from any requirement
to account to NIH for proceeds from the sale of the equipment
or supplies; however, NIH has certain rights with respect to such
property as specified in "Administrative Requirements
Management Systems and Procedures
Property Management
System Standards".
All other types of grants/grantees are subject to the requirements
in 45 CFR 74.34 or 92.32, if title to the equipment vests in the
grantee rather than in NIH. If the grant-supported project or
program for which equipment was acquired is still receiving NIH
funding at the time of sale, the grantee shall credit the NIH
share of the proceeds to the grant and use that amount under the
deductive alternative for program income. If the grantee is no
longer receiving NIH grant support, the amount due should be paid
in accordance with instructions from NIH. These grants/grantees
are also subject to the requirements in 45 CFR 74.35 or 92.33
with respect to the use or sale of unused supplies. If the grantee
retains the supplies for use on other than federally sponsored
activities, an amount is due NIH as if they were sold.
Reporting of Program Income
If a grantee is accountable for the use of program income during
the period of grant support (other than income resulting from
royalties or licensing fees, as provided below), the amount earned
and the amount expended must be reported on the FSR (SF-269).
The costs associated with the generation of the "gross"
amount of program income, if they are not costs charged to the
grant, should be deducted from the "gross" program income
earned, and the "net" program income should be the amount
reported. Program income subject to the additive alternative shall
be reported on lines 10r and 10s, as appropriate, of the FSR (Long
Form); program income subject to the deductive alternative shall
be reported on lines 10c and 10q of the FSR (Long Form); and program
income subject to the matching alternative shall be reported on
lines 10g and 10q of the FSR (Long Form). (See "Administrative
Requirements Monitoring
Reporting".) For
awards under SNAP, the amount of program income earned shall be
reported in the noncompeting continuation request and the amount
expended reported on line 11g of the FCTR (SF-272). The FSR for
the competitive segment must include the aggregate amounts earned
and spent.
Income earned from the sale of equipment shall be reported on
the FSR for the period in which the proceeds are received and
in accordance with the reporting requirements for the program
income alternative specified. Amounts due NIH for unused supplies
shall be reflected as a credit to the grant on line 10c of the
FSR (Long Form).
Where the terms of the NGA, including this policy statement, do
not specify any accountability requirement for income earned,
no reporting of income is required. Reporting requirements for
accountable income accrued after grant support ends will be specified
in the NGA.
Royalties and Licensing Fees from Copyrights, Inventions,
and Patents
Unless specific terms and conditions of the award provide otherwise,
NIH grantees are not required to account for income earned from
copyrighted material. However, grantees must account for royalties
and licensing fees that result from NIH-funded inventions and
patents. Income of this nature must be reported on the annual
utilization report, which is required if the grantee decides to
elect title to the invention or when licensing fees are generated
for inventions that are not patented (i.e., some biological materials
and unique research resources) (see "Administrative Requirements
Availability
of Research Results: Publications and Intellectual Property Rights,
Including Unique Research Resources" and "Administrative
Requirements Monitoring
Reporting").
If commercialization of an invention is an anticipated outcome
of a research project, the NGA may include additional terms and
conditions regarding the disposition of program income.
PROPERTY MANAGEMENT SYSTEM STANDARDS
Generally, grantees may use their own property management policies
and procedures for property purchased, constructed, or fabricated
as a direct cost using NIH grant funds, provided they observe
the requirements in 45 CFR 74.31 through 74.37 or 92.31 through
92.348, as applicable, and the following.
The dollar threshold for determining the applicability of several
of the requirements in those regulations is based on the unit
acquisition cost of an item of equipment. As defined in 45 CFR
74.2, the cost of an item of equipment to the recipient includes
necessary modifications, attachments, etc., that make it usable
for the purpose for which it was acquired or fabricated. When
such accessories or attachments are acquired separately and serve
to replace, enhance, supplement, or otherwise modify the equipment's
capacity, and they individually meet the definition of equipment
(see "Glossary"), any required NIH prior approval for
equipment must be observed for each item. However, the aggregate
acquisition cost of an operating piece of equipment will be used
to determine the applicable provisions of 45 CFR 74.34 or 92.32.
If property is fabricated from individual component parts, each
component must itself be classified as equipment if it meets the
definition of equipment. In this case, the aggregate acquisition
cost of the resulting piece of equipment will determine the appropriate
requirements for accountability in 45 CFR 74.34 or 92.32.
Grantees are required to be prudent in the acquisition of property
under a grant-supported project. It is the grantee's responsibility
to conduct a prior review of each proposed property acquisition
to ensure that the property is needed and that the need cannot
be met with property already in the possession of the organization.
If prior approval is required for the acquisition, the grantee
must ensure that appropriate approval is obtained in advance of
the acquisition. The grantee must also follow appropriate procurement
procedures in acquiring property as specified in "Administrative
Requirements Management Systems and Procedures
Procurement
System Standards and Requirements".
Recipients of NIH grants other than Federal institutions cannot
be authorized to use Federal supply sources.
Real Property
See "Construction Grants"
in Part III for requirements
that apply to the acquisition, use, and disposition of real property.
Fixed equipment that is part of a construction grant is also subject
to those requirements.
Equipment and Supplies
In general, title to equipment and supplies acquired by a grantee
with NIH funds vests in the grantee upon acquisition, subject
to the property management requirements of 45 CFR 74.31, 74.34,
74.35, and 74.37, or 92.32 and 92.33. Limited exceptions to these
general rules are States, which shall use, manage, and dispose
of equipment acquired under a grant in accordance with State laws
and procedures, and certain research grant recipients with exempt
property (see below). These requirements do not apply
to equipment
for which only depreciation or use allowances are charged, donated
equipment, or equipment acquired primarily for sale or rental
rather than for use.
Exempt Property
Under the Federal Grant and Cooperative Agreement Act, 31 U.S.C.
6306, NIH may permit non-profit institutions of higher education
and non-profit organizations whose primary purpose is the conduct
of scientific research to obtain title to equipment and supplies
acquired under grants for support of basic or applied scientific
research without further obligation to the Federal Government,
except that NIH has the right to require transfer of title to
the equipment with an acquisition cost of $5,000 or more to the
Federal Government or to an eligible third party named by the
NIH awarding office under the conditions specified in 45 CFR 74.34(h).
NIH may exercise this right within 120 days of the completion
or termination of an award or within 120 days of receipt of an
inventory, as provided in 45 CFR 74.34(h)(2),whichever is later.
Nonexempt Property
All other equipment and supplies acquired under all other NIH
grant-supported projects by any other type of grantee is subject
to the full range of acquisition, use, management, and disposition
requirements of 45 CFR 74.34 and 74.35, or 92.32 and 92.33. Property
acquired or used under an NIH grant-supported project, including
any federally owned property, is also subject to the requirements
for internal control specified in 45 CFR 74.21 or 92.20, and,
pursuant to 45 CFR 74.37, equipment (and intangible property and
debt instruments) acquired with, or improved with, NIH funds shall
not be encumbered without NIH approval
The grantee's property management system for equipment must meet
the requirements of 45 CFR 74.34(f) or 92.32, which include:
- The grantee keeps records that adequately identify items of
equipment owned, according to the criteria specified in the regulations,
or held by the grantee and state the current location of each
item.
- At least once every 2 years, the grantee physically inventories
the equipment to verify that the items covered by the records
exist and are either usable and needed or listed as surplus.
- Control procedures and safeguards to prevent loss, damage,
and theft and adequate maintenance procedures to keep the equipment
in good condition.
- Proper sales procedures when the grantee is authorized to
sell the equipment.
For items of equipment having a unit acquisition cost of $5,000
or more, NIH has the right to require transfer title to the equipment
to the Federal Government or to an eligible third party named
by the NIH awarding office under the conditions specified in 45
CFR 74.34(h) and 92.32, respectively. This right applies to all
types of grantees, including Federal institutions, under all types
of grants under the stipulated conditions.
If there is a residual inventory of unused supplies exceeding
$5,000 in aggregate fair market value upon termination or completion
of the grant, and if the supplies are not needed for other federally
sponsored programs or projects, the grantee may either retain
them for use on other than federally sponsored activities or sell
them, but, in either case, the grantee shall compensate the NIH
awarding office for its share as a credit to the grant.
State, local, or Indian tribal governments must not use equipment
acquired with grant funds to provide services for a fee to compete
unfairly with private companies that provide equivalent services
unless the terms and conditions of the award provide otherwise.
Revocable License
As permitted under Federal property management statutes and regulations
and NIH property management policies, federally owned tangible
personal property may be made available to grantees under a revocable
license agreement. This allows for the transfer of such property
to the grantee when it is no longer needed under the contract.
The revocable license agreement between NIH and the grantee would
provide for the transfer of the equipment for the period of the
grant support under the following conditions:
- Title to the property remains with the Federal Government.
- NIH reserves the right to require the property to be returned
to the Federal Government should it be determined to be in the
best interests of the Federal Government to do so.
- The use to which the grantee puts the property does not permanently
damage it for Federal Government use.
- The property is controlled and maintained in accordance with
the requirements of 48 CFR 45.5 (the Federal Acquisition Regulation).
PROCUREMENT SYSTEM STANDARDS AND REQUIREMENTS
General
Grantees may acquire a variety of goods or services in connection
with a grant-supported project, ranging from those that are routinely
purchased goods or services to those that involve substantive
programmatic work. States shall follow the same policies and procedures
they use for procurements from non-Federal funds. All other grantees
must follow the requirements in 45 CFR 74.40 through 74.48 or
92.36, as applicable, for the purchase of goods or services through
contracts under grants. The requirements for third-party activities
involving programmatic work are addressed under
"Consortium
Agreements" in Part III.
A contract under a grant must be a written agreement between the
grantee and the third party. The contract must, as applicable,
state the activities to be performed, the time schedule, the policies
and requirements that apply to the contractor, including those
required by 45 CFR 74.48 or 92.36(i) and other terms and conditions
of the grant (these may be incorporated by reference where feasible),
the maximum amount of money for which the grantee may become liable
to the third party under the agreement, and the cost principles
to be used in determining allowable costs in the case of cost-type
contracts. The contract must not affect the grantee's overall
responsibility for the direction of the project and accountability
to the Government. The agreement shall, therefore, reserve sufficient
rights and control to the grantee to enable it to fulfill its
responsibilities.
In situations where a grantee enters into a service-type contract
the term of which is not concurrent with the budget period of
the award, the costs of the contract may be charged to the budget
period in which the contract is executed even though some of the
services will be performed in a succeeding period if:
- The NIH awarding office has been made aware of this situation
either at the time of application or through postaward notification,
- The project has been recommended for a project period extending
beyond the current year of support, and
- There is a legal commitment on the part of the grantee to
continue the contract for its full term.
However, costs will be allowable only to the extent that they
are for services that are provided during the period of NIH support.
In order to limit liability in the event that continued NIH funding
is not forthcoming, it is recommended that grantees insert a clause
in such contracts of $100,000 or less stipulating that payment
beyond the expiration of the current budget period is contingent
on continued Federal funding. The contract provisions prescribed
by 45 CFR 74.48 and 92.36(i)(2) specify termination provisions
for contracts in excess of $100,000.
Approval Requirements
The regulatory procurement standards in 45 CFR 74.44 and 92.36(g)
allow NIH to require approval of specific procurement transactions
under the following circumstances (and provide a mechanism for
governmental grantees to be exempt from this type of review):
- A grantee's procurement procedures or operations do not comply
with the procurement standards required by those regulations.
- The procurement is expected to exceed the "small purchase
threshold" established by the Federal Property and Administrative
Services Act, as amended, (currently $100,000) and is to be awarded
without competition or only one bid or proposal is received in
response to a solicitation.
- A procurement that will exceed the small purchase threshold
specifies a "brand name" product.
- A proposed award over the small purchase threshold is to be
awarded to other than the apparent low bidder under a sealed bid
procurement.
- A proposed contract modification changes the scope of a contract
or increases the contract amount by more than the amount considered
to be a small purchase.
When NIH prior approval is required, the grantee must make available
sufficient information to enable review and approval or disapproval.
This may include, at NIH discretion, pre-solicitation technical
specifications or documents such as requests for proposals or
invitations for bids, or independent cost estimates. Approval
may be deferred pending submission of additional information by
the applicant or grantee or may be conditioned on the receipt
of additional information. Any resulting NIH approval does not
constitute a legal endorsement of the business arrangement by
the Federal Government, nor does such approval establish NIH as
a party to the contract or any of its provisions.
Contracting with Small Businesses,
Minority-Owned Firms, and Women's Business Enterprises
Grantees must make positive efforts to use small businesses, minority-owned
firms, and women's business enterprises as sources of goods and
services whenever possible. Grantees are required to take the
following steps to implement this policy:
- Placing qualified small, minority, and women-owned business
enterprises on solicitation lists.
- Ensuring that small, minority, and women-owned business enterprises
are solicited whenever they are potential sources.
- Considering contracting with consortia of small businesses,
minority-owned businesses, or women's business enterprises when
an intended contract is too large for any one such firm to handle
on its own, if economically feasible, dividing larger requirements
into smaller transactions for which such organizations might compete.
- Making information on contracting opportunities available
and establishing delivery schedules that encourage participation
by small, minority, and women-owned business enterprises.
- Using the services and assistance of the Small Business Administration
and the Minority Business Development Agency of the Department
of Commerce, as appropriate.
- Requiring the prime contractor, if subcontracts are to be
let, to take the affirmative steps listed above.
Monitoring
Grantees are responsible for managing the day-to-day operations
of grant-supported activities using their established controls
and policies, as long as they are consistent with NIH requirements.
However, in order to fulfill their role in regard to the stewardship
of Federal funds, NIH awarding offices monitor their grants to
identify potential problems and areas where technical assistance
might be necessary. This active monitoring is accomplished through
review of reports and correspondence from the grantee, audit reports,
site visits, and other information available to NIH. The names
and telephone numbers of the individuals responsible for monitoring
the programmatic and business management aspects of a project
or activity will be provided to the grantee at the time of award.
Monitoring of a project or activity will continue for as long
as NIH retains a financial interest in the project or activity
resulting from property accountability, audit, and other requirements
that continue for a period of time after the grant is administratively
closed out and NIH is no longer providing active grant support
(see "Administrative Requirements
Closeout").
REPORTING
NIH requires that grantees periodically submit financial and progress
reports. Other required reports may include annual invention utilization
reports, lobbying disclosures, audit reports, reporting to the
appropriate payment points (in accordance with instructions received
from the payment office), and specialized programmatic reports.
Grantees are also expected to publish and provide information
to the public on the objectives, methodology, and findings of
their NIH-supported research activities as specified in "Administrative
Requirements
Availability of Research Results:
Publications and Intellectual Property Rights, Including Unique
Research Resources".
The GMO is the receipt point for most required reports, including
noncompeting continuation requests, final progress reports, final
invention statements and certifications, and lobbying disclosure
statements. Reports must be submitted in an original and two copies
unless the instructions for submission specify otherwise. Submission
of these reports to individuals other than the GMO may result
in delays in processing or the submission being considered delinquent.
Grantees are allowed a specified period of time in which to submit
required financial and progress reports (see 45 CFR 74.51 and
74.52, 92.40 and 92.41, and the discussion below). Failure to
submit complete, accurate, and timely reports may indicate the
need for closer monitoring by NIH or may result in possible award
delays or enforcement actions, including withholding, removal
of expanded authorities, or conversion to a reimbursement payment
method (see also "Administrative Requirements
Enforcement
Actions").
Progress Reports as Part of
Noncompeting Continuation Requests
Progress reports are usually required annually as part of the
noncompeting continuation request or competing continuation application.
However, NIH may require these reports more frequently. The information
to be included in the progress report as part of a noncompeting
continuation request is specified in the PHS-2590 application
instructions, which also include the alternate instructions for
awards under SNAP (see "Administrative Requirements
Noncompeting
Continuation Awards"). The requirements for progress reporting
under construction grants or grants supporting both construction
activities, including acquisition or modernization, and nonconstruction
activities will be specified by the NIH awarding office.
Financial Reports
Reports of expenditures are required as documentation of the financial
status of grants according to the official accounting records
of the grantee organization. Financial or expenditure reporting
is accomplished using the FSR (SF 269 or SF-269 A; the latter
format is the "long form" and is required when a grantee
is accountable for the use of program income). Except for those
awards under SNAP and awards requiring more frequent reporting,
the FSR is required on an annual basis. When required on an annual
basis, the report must be submitted for each budget period no
later than 90 days after the close of the budget period. The report
must also cover any authorized extension in time of the budget
period. If more frequent reporting is required, the NGA will specify
both the frequency and due date.
For awards under SNAP, in lieu of the annual FSR, NIH will use
the quarterly FCTR (SF 272), submitted to PMS, to monitor the
financial aspects of grants. The GMO may review the report for
patterns of cash expenditures, including accelerated or delayed
drawdowns, and to assess whether there are possible performance
or financial management problems. For these awards, an FSR is
required only at the end of a competitive segment. It must be
submitted within 90 days after the end of the competitive segment
and must report on the cumulative support awarded for the entire
segment. An FSR must be submitted at this time whether or not
a competing continuation award is made. If no further award is
made, this report will serve as the final FSR (see "Administrative
Requirements
Closeout").
FSRs may be transmitted electronically9 to OFM, NIH, which, for
this purpose, is equivalent to submission to the GMO. Prior to
submitting FSRs to NIH, grantees must ensure that the information
submitted is accurate, complete, and consistent with the grantee's
accounting system. The signature of the authorized institutional
official on the FSR certifies that the information in the FSR
is correct and complete and that all outlays and obligations are
for the purposes set forth in grant documents, and represents
a claim to the Federal Government. Filing a false claim may result
in the imposition of civil or criminal penalties.
UNOBLIGATED BALANCES AND ACTUAL EXPENDITURES
Disposition of unobligated balances is determined in accordance
with the terms and conditions of award. (See "Administrative
Requirements Changes in
Project and Budget" for NIH approval
authorities for unobligated balances.)
Upon receipt of the annual FSR for awards other than those under
expanded authorities, the GMO will compare the total of any unobligated
balance shown and the funds awarded for the current budget with
the NIH share of the approved budget for the current budget period.
If the funds available exceed the NIH share of the approved budget
for the current budget period, the GMO may select one of the following
options:
- In response to a written request from the grantee, revise
the current NGA to authorize the grantee to spend the excess funds
for additional approved purposes;
- Offset the current award or a subsequent award by an amount
representing some or all of the excess; or
- Restrict from use some or all of the excess funds in the current
budget period and take that amount into account when making a
subsequent award.
There may be instances where the grantee is required to revise
or amend a previously submitted FSR. When the revision results
in a balance due to NIH, the grantee must submit a revised FSR
whenever the overcharge is discovered, no matter how long the
lapse of time since the original due date of the report. Revised
expenditure reports representing additional expenditures by the
grantee that were not reported to NIH within the 90-day time frame
may be submitted to the GMO with an explanation. This includes
expenditures resulting from underfunding a noncompeting continuation
award due to a smaller unobligated balance than anticipated. This
should be done as promptly as possible but no later than 1 year
from the due date of the original report; i.e., 15 months following
the end of the budget period. If an adjustment is to be made,
the NIH awarding office will advise the grantee of actions it
will take to reflect the adjustment. NIH will not accept any revised
report received after that date and will return it to the grantee.
Invention Reporting
All inventions made in the course of, or under, any NIH research
grant, including SBIR/STTR awards, must be promptly and fully
disclosed to NIH within 2 months after the inventor provides written
disclosure to the grantee's authorized official. The disclosure
must be in writing, identify the applicable grant and the name
of the inventor(s), and provide a complete technical description
and other information as required by 37 CFR 401.14(c)(1) (see
"Administrative Requirements
Availability
of Research Results: Publications and Intellectual Property Rights,
Including Unique Research Resources" for the full text of
the clause).
In addition to immediate invention disclosure, each application
for competing or noncompeting continuation support of an NIH grant-supported
research project must include either a listing of all inventions
conceived or reduced to practice during the preceding budget period
or a certification that no inventions were made during the applicable
period.
The grantee must also submit an annual utilization report when
the grantee has elected title to an invention or when royalties
or licensing fees are generated for inventions that are not patented.
NIH has developed an optional on-line Extramural Invention Information
Management System, known as "Edison," to facilitate
grantee compliance with the disclosure and reporting requirements
of 37 CFR 401.14(h). The Internet address for this system is
http://www.iedison.gov.
Information from these reports is not made publicly available.
Report to the Office of Research
Integrity
The regulations governing misconduct in science require the grantee
to submit an annual report (Form 6349) to the Office of Research
Integrity (ORI) detailing aggregate information on allegations,
inquiries, and investigations handled by the grantee in the previous
year. ORI automatically sends this form to NIH grantees at the
end of the calendar year (see "Public Policy Requirements
and Objectives Ethical and Safe Conduct in Science and
Organizational Operations
Misconduct in Science").
Lobbying Disclosure
Grantees subject to the anti-lobbying requirements described in
"Public Policy Requirements and Objectives Ethical
and Safe Conduct in Science and Organizational Operations
Lobbying" must submit the
"Disclosure of Lobbying Activities"
(Standard Form-LLL) for each payment or agreement to make payment
from nonappropriated funds to any lobbying entity for influencing
or attempting to influence an officer or employee of any agency,
a member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with a "covered"
Federal transaction.
RECORD RETENTION AND ACCESS
Grantees must generally retain financial and programmatic records,
supporting documents, statistical records, and all other records
of a grantee that are required by the terms of a grant, or may
reasonably be considered pertinent to a grant, for a period of
3 years from the date the annual FSR is submitted. For awards
under SNAP, the 3-year retention period will be calculated from
the date the FSR for the entire competitive segment is submitted.
Therefore, those grantees must retain the records pertinent to
the entire competitive segment for 3 years from the date the FSR
is submitted to NIH. See 45 CFR 74.53 and 92.42 for exceptions
and qualifications to the 3-year requirement. Those sections also
specify the retention period for other types of grant-related
records, including F&A cost proposals and property records.
See 45 CFR 74.48 and 92.36 for record retention and access requirements
for contracts under grants.
AUDIT
An audit is a systematic review or appraisal made to determine
whether internal accounting and other control systems provide
reasonable assurance that:
- Financial operations are properly conducted.
- Financial reports are presented fairly and accurately.
- Applicable laws, regulations, and other grant terms have been
complied with.
- Resources are managed and used in an economical and efficient
manner.
- Desired results and objectives are being achieved in an effective
manner.
NIH grantees (other than Federal institutions) are subject to
the audit requirements of OMB Circular A-133, as implemented by
45 CFR 74.26 and 92.26, or the audit requirements stated in 45
CFR 74.26(d) (for types of organizations to which OMB Circular
A-133 does not directly apply). In general, OMB Circular A-133
requires that a State government, local government or non-profit
organization (including institutions of higher education) that
spends $300,000 or more per year in Federal grants, cooperative
agreements, and/or procurement contracts have an annual audit
by an independent Certified Public Accountant or accounting firm
or State auditor. The audit requirements for
foreign grantees
and for-profit grantees are addressed in
Part III of this policy
statement.
When a grantee procures audit services, the procurement must comply
with the procurement standards of 45 CFR Part 74 or 92, as applicable,
including obtaining competition, making positive efforts to use
small businesses, minority-owned firms, and women's business enterprises.
Grantees should ensure that comprehensive solicitations, made
available to interested firms, include all audit requirements
and specify the criteria to be used for selection of the firm,
and that they enter into written agreements with auditors that
specify the rights and responsibilities of each party.
The OMB Circular explains in detail the scope, frequency, and
other aspects of the audit. Some highlights of the Circular are
as follows:
If HHS awards are included in the schedule of expenditures of
Federal awards and the report contains adverse findings, the Federal
clearinghouse will provide copies of the audit report to the HHS
Office of the Inspector General clearinghouse, which will, in
turn, distribute them within HHS for further action, as necessary.
Audit reports should not be sent directly to the GMO.
Recipients must follow a systematic method for ensuring timely
and appropriate resolution of audit findings and recommendations,
whether discovered as a result of Government-initiated or recipient-initiated
audits. Grantees are usually allowed 30 days from the date of
request to respond to the responsible audit resolution official
(Action Official) concerning audit findings. Failure to submit
timely responses may result in cost disallowance or other actions
by NIH or HHS. At the completion of the audit resolution process,
the grantee will be notified of the Action Official's final decision.
The grantee may appeal this decision (see "Administrative
Requirements Grant
Appeals Procedures").
Refunds owed to the Government as a result of audit disallowances
must be made in accordance with instructions issued by the Action
Official or OFM, NIH.
See "Allowability of Costs/Activities Selected
Items of Cost" for the allowability of
grantee audit costs.
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